Berkshire Hathaway’s vice chairman, Charlie Munger, has said investing in cryptocurrencies is “almost insane” after suggesting that the cryptocurrency space is a “mass folly” and that the only correct approach to it is “total avoidance.”
During an interview with the Australian Financial Review, Warren Buffett’s long-time collaborator Munger said that investors should “never touch” cryptocurrencies and instead should let them “pass by” while focusing on purchasing shares in companies that have “real interest in real businesses.”
Explaining his reasoning, Munger said:
- “Crypto is an investment in nothing, and the guy who’s trying to sell you an investment in nothing says, ‘I have a special kind of nothing that’s difficult to make more of.” (…) I regard it as almost insane to buy this stuff or to trade in it.”
The 98-year-old billionaire added that he believes the cryptocurrency industry is full of bad actors selling worthless tokens to investors, and added that anyone buying and selling these assets was undermining the existing monetary system.
Per Munger’s words, anyone “that sells this stuff is either delusional or evil.” Munger, it’s worth noting, has been a long-time critic of cryptocurrencies that at one point called Bitocin a “total insanity,” adding the space is “ bad people, crazy bubble, bad idea, luring people into the concept of easy wealth without much insight or work.”
Back in 2018 both Munger and Warren Buffett slammed bitcoin, saying it’s “probably rat poison squared.” Munger likened cryptocurrencies to “dementia” at the time and said “it’s like somebody else is trading turds and you decide you can’t be left out.”